Oregon's new Health Care Funding law

This new law provides more than $400 million in funding for Medicaid and the state reinsurance program.

Posted: Mar. 13, 2019 2:19 PM

Updated: Mar. 13, 2019 4:26 PM

Posted By: Ashley Hall

SALEM, Ore. -- Today, Governor Kate Brown signed House Bill 2010 into law to provide more than $400 million for Medicaid and the state reinsurance program. Many of Oregon's health care providers, including Providence Health & Services, Asante, PrimaryHealth, Allcare Health, and others were featured on one letter of support for the legilsation.

“House Bill 2010 is a significant step forward in ensuring every single Oregon has access to affordable health coverage,” said Governor Brown. “But HB 2010 only covers a portion of what we need for our health care system. So, as we celebrate today, we need to immediately turn our focus to filling the rest of the Oregon Health Plan funding gap.”

This new law includes a Health Insurance Assesment & Managed Care Tax, to generate $344 million for the Oregon Health Plan and the Oregon Reinsurance Program, which helps stabilize insurance rates for people who buy coverage through the private market. PacificSource came out in support of the legislation. You can read the company's statement here.

$98 million will be raised via hospital assessment tax, generating $98 million for the Oregon Health Plan (Oregon's Medicaid program).

To provide the rest of the needed funding, Governor Brown has proposed an $2-per-pack increase in the cigarette tax, a tax on e-cigarettes, and the creation of an assessment on employers that do not provide affordable coverage to their workers. There are estimates that could result in $95 million dollars in revenue.

Here is a look at the information presented by the Oregon Health Authority about the current funding of Medicaid.

“Securing this funding package will ensure Oregonians continue to get the health care coverage they need to thrive and will enable a balanced budget for the Oregon Health Plan for the next six years,” Governor Brown said.